Exhibit 3-1
-Consider the market described by the schedule in Exhibit 3-1. Which of the following is true?
A)The law of supply is violated.
B)There is no equilibrium.
C)At $5 per unit, people will purchase 100 units.
D)At $2 per unit, people will purchase 700 units.
E)The law of demand is violated.

Question

Exhibit 3-1 
-Consider the market described by the schedule in Exhibit 3-1. Which of the following is true?
A)The law of supply is violated. 
B)There is no equilibrium. 
C)At $5 per unit, people will purchase 100 units. 
D)At $2 per unit, people will purchase 700 units. 
E)The law of demand is violated.

Quizplus · Accepted Answer

The correct answer is C because at a price of $5 per unit, the quantity demanded is 100 units, which is consistent with the law of demand where quantity demanded decreases as price increases.

Exhibit 3-1 -Consider the Market Described by the Schedule in Exhibit 3-1